Reuters: Money: Goldman Sachs eyes $3 billion property debt fund: report

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Goldman Sachs eyes $3 billion property debt fund: report Apr 2nd 2012, 14:22 Tweet Share this Email Print Related News Goldman loses bid to end lawsuit over risky CDO Wed, Mar 21 2012 UPDATE 6-Under pressure, Hartford to sell some units Wed, Mar 21 2012 Departing Goldman banker slams "rip-off" culture Thu, Mar 15 2012 UPDATE 6-Departing Goldman banker slams 'rip-off' culture Wed, Mar 14 2012 Special report: Goldman's promised land: Salt Lake City Fri, Mar 9 2012 Analysis & Opinion Providence drowns while Brown thrives How many insiders should sit on Goldman's board? A Goldman Sachs sign is seen on at the company's post on the floor of the New York Stock Exchange, January 18, 2012. Credit: Reuters/Brendan McDermid LONDON | Mon Apr 2, 2012 10:22am EDT LONDON (Reuters) - A private equity arm of Goldman Sachs is looking to launch a $3 billion property debt fund in a bid to take advantage of a growing shortage of real estate financing across the UK and Europe, British newspaper the Times said on Monday. Real Estate Principal Investment Area (REPIA) is exploring options to create a fund that would provide senior and mezzanine loans to property investors, and will target property lending that is riskier but which would offer higher potential returns, the Times said without citing sources. Mezzanine debt is commonly used to plug the gap between equity and senior debt, usually in the 60-80 percent loan-to-value band. The fund's structure and make up would be similar to another $2.6 billion property debt fund that REPIA set up in 2009 to target U.S. property investors, the newspaper said. Europe's property industry is grappling with a widening debt funding gap, the shortfall between debt needing refinancing and the money available do so, as more banks slash lending to the sector in a bid to comply with incoming solvency regulations. Property consultancy CBRE Group estimates that there is about 960 billion euros ($1.3 trillion) of outstanding debt secured across Europe, of which 575 billion must be repaid within the next three years. Non-bank financiers that have recently launched funds targeting the financing gap include the property units of insurers Prudential Financial and AXA Group while fund manager BlackRock said it was considering making a foray into real estate debt. Goldman Sachs was not immediately available for comment. ($1 = 0.7509 euros) (Reporting by Brenda Goh) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (2) The US taxpayers bailed out this corporation and they invest out of the country?????? Apr 02, 2012 5:08am EDT  --  Report as abuse Have you people not learned your lessons yet???? !!!! Apr 02, 2012 5:43am EDT  --  Report as abuse See All Comments » Add Your Comment

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